Interview with Visaka Industries Ltd
We want to take advantage of the economics of scale and channel our efforts to create cost-effectiveness by automating our major operations, affirms S Shafiulla, Chief Financial Officer, Visaka Industries Ltd.
Visaka Industries’ textile segment has shown remarkable recovery, making highest segment profit of Rs 44 crore in FY22? What have been the macro drivers of growth?
The Wonder Yarn, our synthetic yarn division performed creditably, maintaining traditional margins this year. The last few years proved turbulent for the textile industry due to the outbreak of the Covid-19 pandemic. The industry as well as our business saw impressive growth thanks to things getting back to normal and the economic activity picking up in the principal weaving hubs of Mumbai and Bhilwara. We’re optimistic in terms of our business’s niches, our loyal clientele, increased exports and new free trade deals being signed by India that could open new markets.
What are your key growth triggers?
We’re in the business of sustainability. Every product we invent or sell incorporates sustainability in some way or another. This works well for us as the world and its populace are looking to ‘go green’ in every aspect they can and this is not a mere passing trend, it is here to stay. Sustainability is one of the key growth triggers and manufacturing and promoting green products is our mission. Apart from this, it helps immensely that our manufacturing units are spread out across India making key raw materials, optimum logistic costs and large dealer networks easily accessible.
Presently, what are your top 3 strategic priorities?
Without giving too much away, this FY we’ll stay focussed on operating with maximum capacities across all our brands. We want to take advantage of the economics of scale. We’d also like to channel our efforts towards creating cost-effectiveness by automating our major operations. And finally, as we mention products – Vnext and ATUM.
What is your earnings outlook for FY23?
For FY 23, our total revenues are expected to grow by 15% and our sustainable construction materials brand Vnext is on the path to an even higher growth trajectory. Unfortunately, we’re estimating some challenges in the supply chain and raw material availability given the Russia-Ukraine conflict. This could add some pressure on margins due to an increase in input costs.
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